IMF Raises India's Economic Growth Forecast To 6.3 Per Cent For FY24 In Latest Report

The International Monetary Fund (IMF) has brought good tidings for India in its October 2023 World Economic Outlook (WEO) report.

The IMF has raised India's economic growth projection for the current fiscal year from 6.1 per cent to 6.3 per cent, signifying growing economic resilience.

Furthermore, the IMF foresees retail inflation in India climbing to 5.5 per cent in 2023-24, followed by a decline to 4.6 per cent in 2024-25, indicating efforts to manage price stability.

The IMF's commentary on India's economic outlook highlighted that "Growth in India is projected to remain strong, at 6.3 per cent in both 2023 and 2024, with an upward revision of 0.2 percentage points for 2023, reflecting stronger-than-expected consumption during April-June", as reported by The Times Of India.

The Reserve Bank of India, on the other hand, has estimated consumer price index (CPI)-based inflation for the current fiscal year at 5.4 per cent, accompanied by an expected GDP growth rate of 6.5 per cent.

Notably, the IMF emphasized that India's monetary policy projections are in sync with the central bank's medium-term inflation targets.

Additionally, the IMF anticipates that India's current account deficit will persist at 1.8 per cent of GDP in FY24 and FY25, suggesting a stable external position.

The IMF's report also encompassed adjustments to growth forecasts for China and the Europe, shedding light on the global economic landscape characterized by continued low and uneven growth.

While the IMF retained its global real GDP growth projection at 3.0 per cent for 2023 in its latest WEO, it made a slight downward adjustment of 0.1 percentage point to 2.9 per cent for 2024 compared to its prior July estimate.